10 Great Books in Personal Finance
It’s no secret that personal finance books are big business, selling millions of copies annually and becoming the must-read book for anyone seeking financial freedom. Whether you’re looking to start investing or wondering how you can pay off your credit card debt, there’s a personal finance book out there that speaks to your situation. In fact, 10 of the most popular personal finance books have sold over a million copies each! Here are the top 10 Great Books in personal finance, along with what each book covers.
1) Wealthy Dad Poor Dad by Robert Kiyosaki
In his book, Robert Kiyosaki tells a story of two dads: One dad’s financial advice is to get a good education and get a secure job, while his friend’s advice was to get rich quickly. As a result, both kids go on to live out their financial lives accordingly. While Kiyosaki learned firsthand that getting rich through real estate—the path advocated by his rich dad—is possible for anyone willing to put in hard work and learn from other people’s mistakes, he also witnessed what happens when you aren’t financially literate. His poor dad was financially illiterate because he went through school during the Great Depression and never learned basic money management skills.
2) Think and Grow Rich by Napoleon Hill
To get a more concrete idea of how to make money, one should read Napoleon Hill’s Think and Grow Rich. This book is based on findings from interviews Hill did with 23 millionaires who made their fortune by following definite plans, [and] decided upon impulse and inspiration to go into certain lines of endeavor.
As such, it makes sense that great thinkers such as Thomas Edison and Henry Ford (as well as others including Andrew Carnegie) considered Think and Grow Rich to be one of their favorite books on how to get rich.
Of course, many wealthy people never read a self-help book in their lives, so perhaps there is something special about Hill’s work? In any case, Think and Grow Rich takes its readers through 13 steps to financial success.
3) The Intelligent Investor by Benjamin Graham
Published way back in 1949, The Intelligent Investor is still considered by many to be one of, if not THE best book on fundamental analysis. Written by Benjamin Graham – whom many consider being the father of value investing – it focuses on teaching investors how to identify undervalued stocks.
While it’s not a fast-paced read, The Intelligent Investor contains some incredibly valuable lessons that every stock investor should take to heart. Also published as Security Analysis and Graham and Dodd’s Security Analysis.
4) Secrets Of Millionaire Mind by T. Harv Eker
If you want to know what it takes to reach millionaire status, look no further than Harv Eker’s Secrets of Millionaire Mind. The book is a compilation of wealth-building tips from millionaires around the world.
It outlines specific approaches that can be applied to any individual’s goals for financial security. From how to overcome fear and stop living paycheck-to-paycheck, to achieving your dreams—Secrets of Millionaire Mind will provide anyone with practical ideas that work.
Chances are, you know at least one person who has become a millionaire through hard work, persistence, and smart money management. What are their secrets? And how can they be replicated? This book explores these questions by offering guidance from self-made millionaires throughout North America.
5) I Will Teach You To Be Rich by Ramit Sethi
This best-selling book by Ramit Sethi takes a step-by-step approach to teach you everything you need to know about personal finance. It contains solid information and is both entertaining and easy to read. I Will Teach You To Be Rich breaks down exactly how your money works, from paying off debt to saving for retirement.
The author even includes a section on financial planning when you have kids! With clear instructions and practical advice, I Will Teach You To Be Rich can help anyone get a handle on their finances.
6) Rework by Jason Fried & David Heinemeier Hansson
Rework shows that business doesn’t have to be a bloodsport—that success can be achieved by coolly evaluating what not to do. The book argues for simple over complex, concrete over the abstract, and elegant solutions over hacks.
But simplicity takes effort. It involves, says Fried and Hansson, continuous simplification of your business model so you can remain nimble amid change. This isn’t just another book about business, it’s an operating manual for entrepreneurship.
There are scores of books on how to start a company but only one with these philosophies backed up by real-world examples from companies like Groupon, Apple, Zappos, Google, and many more.
7) Never Eat Alone by Keith Ferrazzi
This book focuses on how to use networking as a way to expand your personal, professional, and social connections. It’s very useful for anyone who is new to networking or who finds themselves struggling with it. Keith Ferrazzi is one of today’s top relationship experts—and his ideas are simple but powerful.
He says that if you follow just one piece of advice from his book, it should be that you treat everyone like an investment opportunity—because if they don’t know you, they can’t help you succeed. This doesn’t mean acting like an overbearing salesperson; rather, it means actively thinking about ways to connect with other people at your office or school, volunteering together on weekends, and attending local networking events.
8) Automatic Millionaire by David Bach
According to Bach, the first step to getting rich is knowing how much you make. So let’s start with that. You need a total picture of your income, including bonuses and commissions.
Then, look at your spending habits. Don’t forget about your lifestyle choices—the ways you choose to spend money can either put you ahead or leave you behind on expenses like new cars and high rent. The goal is to have more coming in than going out so that eventually, putting money into savings or investments becomes easier.
Once you’ve got a handle on where all of your money goes each month, it’ll be easier to set some goals for yourself so that you can hit pay dirt sooner rather than later.
9) Smart Women Finish Rich by David Bach
Bach’s classic book is an all-around winner. It’s filled with useful tips for building wealth—all of which are based on personal experience and real-world research. For starters, Bach recommends that women set aside 15 percent of their income, whether it comes from a job or investment or some combination of both. This alone may be one of his most powerful pieces of advice.
10) 7 Habits of Highly Effective People by Stephen Covey
A classic book in management and personal improvement, 7 Habits of Highly Effective People is a must-read for anyone serious about personal development. By shifting our focus from being effective at acting on things to being effective at prioritizing what we act on, Covey lays out an easy-to-follow framework that makes managing our time easier.
His paradigm is based on seven steps to personal effectiveness: be proactive, begin with the end in mind, but first things first, think to win/win, seek first to understand then to be understood, synergize and sharpen your saw.
Although he discusses how these habits apply most easily within business environments, they can be adapted to any pursuit by anyone trying to make progress toward goals.
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